CFPB's First National Survey on Financial Well-Being Shows More Than 40 Percent of U.S. Adults Struggle to Make Ends Meet

WASHINGTON, D.C. – Today, the Consumer Financial Protection
Bureau (CFPB) released the results of a first-of-its-kind national survey on
the financial well-being of U.S. consumers that showed that more than 40
percent of U.S. adults struggle to make ends meet. The survey provides
measurements and insights on the financial well-being of specific groups of
consumers as well as the population as a whole. In addition to the survey, the
Bureau also released an interactive online tool allowing consumers to measure
their level of financial well-being.

“These survey results are beginning to measure and examine the
financial well-being of consumers,” said CFPB Director Richard Cordray. “And
the new tool we are releasing allows consumers to measure their own financial
well-being and helps them take better control of their financial futures.”

National Financial Well-Being Survey

The National Financial Well-Being Survey was conducted by the CFPB in
2016. Using the 10 question scale
developed by the CFPB, the survey provides the first-ever national data
directly measuring the financial well-being of U.S. consumers. Upon answering
the 10 questions provided, consumers were given a score from 0-100. In the
survey, the average consumer score was 54. The consumer sample used to conduct
the survey was designed to be representative of U.S. households. In addition to
responding to the questions which are included in the financial well-being
scale, people participating in the survey answered questions about a host of
other measures. These measures include individual, household, and family
characteristics; income and employment; savings and safety nets; financial
experiences; and money behaviors, skills, and attitudes. Major findings from
the report include:

More than 40 percent of adults report
struggling to make ends meet: Of the nationally representative sample of
consumers surveyed, 43 percent of consumers report struggling to pay bills.
Additionally, over one third—34 percent—of all consumers surveyed reported
experiencing material hardships in the past year. For the survey, examples of
material hardships include running out of
food, not being able to afford a place to live, or lacking the money to seek
medical treatment.

Certain financial and demographic characteristics
are associated with financial well-being: Educational attainment,
income, and employment status all appear to have a strong relationship with
financial well-being. Additionally, the survey showed that financial well-being
is higher for older adults, especially those aged 65 and older, whose average
score was 61. On the other end of the spectrum, younger adults, those 34 and
younger, tended to have the lowest financial well-being score with an average
of 51.

Financial Well-Being Tool

The CFPB is also releasing an interactive online tool to enable people
to evaluate their own financial well-being and explore ways to take control of
their finances. This new tool is based on the CFPB
Financial Well-Being Scale, which was released in 2015 for use by financial
education professionals working with consumers. The tool allows consumers to
use the financial well-being scale themselves, and see their resulting
financial well-being score online. Consumers can track their financial
well-being score over time, or see how they compare to other consumers
nationally, including by income, age, and employment status. Additionally, consumers
can access CFPB resources to help take control of their finances and make
progress towards financial goals, and find free or low-cost help from financial
professionals.

The Consumer Financial Protection Bureau is
a 21st century agency that helps consumer finance markets work by making rules
more effective, by consistently and fairly enforcing those rules, and by
empowering consumers to take more control over their economic lives. For more
information, visit consumerfinance.gov.